Daily News: April 11, 2013

CFO: Leverage Ratios Surge at Large Companies


CFO reported that with commercial and industrial lending up by 11% in 2012 and nearly 13% in January, according to the Federal Reserve, some U.S. firms have added so much debt that they have less margin for error if their earnings decline or if interest on floating-rate debt starts to rise.

CFO noted that more than 350 U.S. firms now have a thinner earnings cushion to cover the debt on their balance sheets.

To read the full CFO article click here.